Grayscale Sues SEC for Rejecting to Turn GBTC into an ETF

Grayscale Investments has recently initiated a lawsuit against the Securities and Exchange Commission (SEC) after the regulator rejected the company’s application to convert its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.

The regulator says it has made this decision because of non-compliance with the requirements for “preventing fraudulent and manipulative actions, as well as protecting investors and the public interest.”

Grayscale has said that the regulator’s willingness to approve futures-based Bitcoin ETFs while rejecting orders based on its spot variant may violate administrative procedures law.

Grayscale CEO Michael Sonnenshein has promised to “use all the resources of the company to protect the interests of investors and fairly regulate investment vehicles in the first cryptocurrency.”